Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1150
• Format: Word; Rich Text

Description

This form is a long form subsurface underground gas storage lease and agreement with landowner. Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) Introduction: The Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) is a legal contract between a landowner in Montana and a gas storage operator. This agreement grants the gas storage operator the right to store and extract natural gas in subsurface underground formations located on the landowner's property. The lease and agreement established detailed provisions to govern the rights, responsibilities, and compensation for both parties involved. Key Provisions of the Montana Subsurface Underground Gas Storage Lease: 1. Grant of Rights: The agreement grants the gas storage operator exclusive rights to access and use the subsurface underground formation for the purpose of storing and withdrawing natural gas. The lease details the specific boundaries, depths, and rock strata involved. 2. Term and Extensions: The lease specifies the initial term during which the gas storage operator can exercise the rights granted. It may also include provisions for extensions based on certain conditions. The duration can vary depending on the agreement between the parties. 3. Rent and Royalties: The lease outlines the payment structure, including rent and royalties payable to the landowner. Rent often involves fixed annual payments to compensate the landowner for granting access. Royalties refer to a percentage of the value of the gas extracted from storage, which serves as additional compensation. 4. Operations and Maintenance: This section addresses the gas storage operator's obligations regarding the construction, operation, and maintenance of the underground storage facilities. It typically covers safety considerations, regulatory compliance, environmental protection measures, and restoration requirements upon lease termination. 5. Storage Fees and Withdrawal: The agreement establishes the methodology for calculating storage fees, which the gas storage operator charges third-party gas suppliers for storing their gas. It also defines the procedures for withdrawing gas from storage, including notification, scheduling, and priority arrangements. 6. Right of Entry and Access: The lease delineates the rights of the gas storage operator to access the leased area for activities such as drilling, testing, inspecting, and repairing the storage facilities. It often includes restrictions on the landowner's use of the leased area to prevent interference with gas storage operations. 7. Insurance and Liability: This section details insurance requirements for both the landowner and the gas storage operator. It may include provisions for indemnification, limitation of liability, and obligations to carry appropriate insurance coverage to protect both parties against potential damages or claims arising from storage operations. Types of Montana Subsurface Underground Gas Storage Lease and Agreement: 1. Fixed-Term Lease: This type of agreement specifies a fixed duration for the lease, after which both parties may choose to renew or terminate the lease. 2. Evergreen Lease: An evergreen lease is an indefinite term agreement that is automatically renewed unless one party provides prior notice to terminate or renegotiate the lease. 3. Storage Rights Assignment: In some cases, rather than a lease agreement, a gas storage operator may seek to acquire the rights to an existing lease from another party. These agreements involve the transfer and assignment of storage rights while maintaining the terms and conditions outlined in the original lease. Conclusion: The Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) establishes the legal framework for gas storage operations on a landowner's property. With comprehensive provisions covering rights, compensation, operations, and other considerations, this agreement protects the interests and rights of both the landowner and the gas storage operator.

Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) Introduction: The Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) is a legal contract between a landowner in Montana and a gas storage operator. This agreement grants the gas storage operator the right to store and extract natural gas in subsurface underground formations located on the landowner's property. The lease and agreement established detailed provisions to govern the rights, responsibilities, and compensation for both parties involved. Key Provisions of the Montana Subsurface Underground Gas Storage Lease: 1. Grant of Rights: The agreement grants the gas storage operator exclusive rights to access and use the subsurface underground formation for the purpose of storing and withdrawing natural gas. The lease details the specific boundaries, depths, and rock strata involved. 2. Term and Extensions: The lease specifies the initial term during which the gas storage operator can exercise the rights granted. It may also include provisions for extensions based on certain conditions. The duration can vary depending on the agreement between the parties. 3. Rent and Royalties: The lease outlines the payment structure, including rent and royalties payable to the landowner. Rent often involves fixed annual payments to compensate the landowner for granting access. Royalties refer to a percentage of the value of the gas extracted from storage, which serves as additional compensation. 4. Operations and Maintenance: This section addresses the gas storage operator's obligations regarding the construction, operation, and maintenance of the underground storage facilities. It typically covers safety considerations, regulatory compliance, environmental protection measures, and restoration requirements upon lease termination. 5. Storage Fees and Withdrawal: The agreement establishes the methodology for calculating storage fees, which the gas storage operator charges third-party gas suppliers for storing their gas. It also defines the procedures for withdrawing gas from storage, including notification, scheduling, and priority arrangements. 6. Right of Entry and Access: The lease delineates the rights of the gas storage operator to access the leased area for activities such as drilling, testing, inspecting, and repairing the storage facilities. It often includes restrictions on the landowner's use of the leased area to prevent interference with gas storage operations. 7. Insurance and Liability: This section details insurance requirements for both the landowner and the gas storage operator. It may include provisions for indemnification, limitation of liability, and obligations to carry appropriate insurance coverage to protect both parties against potential damages or claims arising from storage operations. Types of Montana Subsurface Underground Gas Storage Lease and Agreement: 1. Fixed-Term Lease: This type of agreement specifies a fixed duration for the lease, after which both parties may choose to renew or terminate the lease. 2. Evergreen Lease: An evergreen lease is an indefinite term agreement that is automatically renewed unless one party provides prior notice to terminate or renegotiate the lease. 3. Storage Rights Assignment: In some cases, rather than a lease agreement, a gas storage operator may seek to acquire the rights to an existing lease from another party. These agreements involve the transfer and assignment of storage rights while maintaining the terms and conditions outlined in the original lease. Conclusion: The Montana Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) establishes the legal framework for gas storage operations on a landowner's property. With comprehensive provisions covering rights, compensation, operations, and other considerations, this agreement protects the interests and rights of both the landowner and the gas storage operator.